TLDR
- Virginia launching new economic development initiative with federal grant and venture capital firms
- Program aims to fund small businesses and kickstart growth for existing businesses
Article Summary
Virginia has unveiled a new economic development initiative called “Virginia Invests” that will utilize a $176 million grant from the U.S. Treasury’s State Small Business Credit Initiative. The program, led by the Virginia Innovation Partnership Corp., will allocate $40 million to seven venture capital funds which will match the amount with additional funding to create a total pool of $100 million. The goal is to provide capital to Virginia-based businesses and help them grow.
Governor Glenn Youngkin emphasized the importance of bringing together investors and small businesses to address the challenge of accessing capital. He believes that each dollar from the grant will generate $10 of additional investment, as the businesses that receive the initial funds attract more investment. The program aims to not only provide financial support but also mentorship, advice, and access to networks for start-ups and growing small businesses.
The initiative received funding through the State Small Business Credit Initiative, a program aimed at supporting small businesses and entrepreneurship. Virginia secured a $176 million grant in 2022 and has been working on lining up venture capital partners and setting guidelines for business qualifications. The rest of the grant will go towards additional small-business investments.
Youngkin also addressed questions about his vetoes related to Confederate heritage measures, stating that the legislation disregarded other Confederate-related groups and that his proposed amendments aimed at setting a broad policy. He defended his actions by emphasizing the need for a fair and comprehensive review process for all organizations.
